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Debt Deflation and Financial Instability: Two Historical Explorations

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Author Info
Barry Eichengreen and Richard S. Grossman.

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Abstract

Recent research, both historical and contemporary, has broadened existing analyses of the connections between financial markets and macroeconomic conditions to embrace debt deflation and financial instability explanations for business cycle fluctuations. This paper explores two episodes on which much of this research has focused: the post-bellum United States and the global depression of the 1930s. It seeks to distinguish the effects of bank failures and debt deflation and to probe the connections between them.

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Publisher Info
Paper provided by University of California at Berkeley in its series Economics Working Papers with number 94-231.

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Date of creation: 01 Oct 1994
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Handle: RePEc:ucb:calbwp:94-231

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  1. Michael D. Bordo & Michael J. Dueker & David C. Wheelock, 2001. "Aggregate Price Shocks and Financial Stability: The United Kingdom 1796-1999," NBER Working Papers 8583, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Barry Eichengreen & Andrew K. Rose, 1998. "Staying Afloat When the Wind Shifts: External Factors and Emerging-Market Banking Crises," NBER Working Papers 6370, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Michael D. Bordo & Michael J. Dueker & David C. Wheelock, 2000. "Aggregate Price Shocks and Financial Instability: An Historical Analysis," NBER Working Papers 7652, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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